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Timber Company Rejects Protection Deal For Redwoods

February 28, 1999|By From Tribune News Services.

SACRAMENTO, CALIFORNIA — Efforts to preserve a vast chunk of Northern California's Headwaters Forest suffered a major setback as a timber company rejected a $480 million deal that would have set aside majestic stands of ancient redwoods for the public to enjoy.

State and federal officials approved the proposal after lengthy negotiations, pleasing environmentalists by demanding protection of land throughout the company's holdings.

But Pacific Lumber Co., which is owned by Houston-based Maxxam Corp., turned it down Friday, saying the deal could financially cripple the 130-year-old logging company and force layoffs.

"We could not agree to a deal that would have made our company uncompetitive and uneconomic," said Pacific Lumber President John Campbell. "We had an obligation to our investors, to the men and women who work for the company."